American to appeal blocking of JetBlue alliance

Although a judge shot down the American Airlines-JetBlue Northeast alliance, American is not done yet.

The carrier plans to appeal the ruling.

A federal judge ruled to block the airline alliance as it violates antitrust law.

The ruling said the airlines must end their alliance by late June.

The Northeast Alliance agreement enabled American and JetBlue to coordinate flights and revenue share on routes in and out of New York and Boston.

“We’ve got a system that allows for appeal, and we are going to do that,” American CEO Robert Isom said.

“In the meantime, we are going to have to work with the DOJ, and JetBlue, to find out exactly what we do in the interim.”

American could seek a stay while it appeals the decision.

The airline alliance ‘replaces full-throated competition with broad cooperation,’ U.S. District Judge Leo Sorokin said when blocking the airline pact.

American’s CFO Devon May said losing the verdict wouldn’t significantly impact the bottom line.

However, the JetBlue tie-up was a way to boost its presence in the Northeast where it lags JetBlue, United and Delta Air Lines.

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